Independent Power Producers (IPP)

PNG Power chairman, McRonald Nale shared that the electrical bills owed to IPPs is inaccurate.

“PPL owes IPPs less than K700m which is inclusive of capital recovery cost, interest cost (inclusive of late payments), and other charges on top of the energy bills as stipulated.

However, the inability to fulfill commitments and rigidity of the contractual arrangements in the Power Purchase Agreement under the current model is concerning.

The National Research Institute Discussion Paper No. 203 titled: Independent power producers and deregulation in an island-based small electricity system: The case of Papua New Guinea by Associate Professor Rabindra Nepal and Research Fellow Ronald Sofe reviews the prospect of electricity sector reform and the development of IPPs. 

PNG Power clarified in the statement that it is taking serious steps to address the issues it is currently experiencing.

One of the main challenges faced by PNG Power is the reliability of power supply, which is a result of ageing infrastructure, power theft, and the inability to pass on the costs of power purchased to end users.

To address these issues, PNG Power is undertaking various projects to increase electricity availability in Port Moresby, Ramu, and Lae and to improve reliability through better transmission and distribution.